The EUR/USD pair has been trading around the 1.1840 and 1.1850 regions for the past few hours, with Lagardes speech expected to give the market a clear direction for the rest of the day.
Market Awaits Lagarde Speech
The forex market is anticipating the speech by ECB president Christine Lagarde in the coming hours. The EUR/USD pair is performing excellently so far in the European session, up by 0.50% to currently trade at 1.1859.
However, buyers are just reemerging after surrendering the market to the sellers earlier today. After closing at a modest 1.1870 yesterday, the EUR/USD pair began the Asian trading session in a weak manner, declining towards the 1.1840 region.
The pair had remained in that session for the remainder of the Asian session before starting to recover during the European trading session. The ECB‘s Review Strategy didn’t surprise the market participants, and it was the catalyst that limited further upside movement for the EUR/USD pair.
ECB President Lagarde is expected to participate in a panel discussion on digitalization later today, and investors would shine the spotlight on her. The ECB will also publish its Accounts of the latest meeting. These two events would determine how the EUR/USD pair would perform for the rest of the day.
A look at the shared currencys performance in the short and medium-term, the pace of economic recovery will play a crucial role in determining how it fairs. At the moment, Europe is behind the US and Asia in terms of the speed of economic recovery, and this has affected some of the currencies in the region.
Other events that could shape the performance of the Euro include progress of vaccine rollout, sustainability of the pick-up in inflation figures, German elections, and more.